FMZ quantitative trading platform use teaching
Perpetual contract balance strategy Video Guide:
The balance strategy introduction:
At present, FMZ has officially released a sustainable perpetual contract grid strategy, which is very popular among users, however, The grid strategy also has some problems:
- It is necessary to set parameters such as initial price, grid spacing, grid value, long-short mode, etc. The settings are cumbersome and have a great impact on revenue, making it difficult for beginners to set.
- The perpetual contract grid strategy has high short risk and relatively low long risk. Even if the grid value is set to a small value, it will not have a great reduce on the short-liquiation price.
- The perpetual contract grid strategy can choose to only long mode to avoid the risk of shorting, and it seems okay so far. However, it needs to face the problem that the current price exceeds the initial price, resulting in an empty position, and the initial price needs to be reset.
The balance strategy always holds long positions with a fixed ratio or value, sells some when price rises, and buys when price falls. It can be run with simple settings. Even if the currency price rises a lot, there is no risk of going short. The problem with the spot balance strategy is that the capital utilization rate is low, and there is no easy way to increase leverage. And perpetual contracts can solve the problem. If the total money is 1000, you can open a position of 2000, which exceeds the original capital and improves the capital utilization rate. Another parameter is the adjustment ratio, which controls when to change the position. For example, if it is set to 0.01, which means sell 1% position if the position value increase by 1%.
- The risk of liquidation in a big drop. the position amount will continue to increase and it is likely to be liquidated. However, if the leverage is lower than 1, the risk of liquidation will be controllable, and there is no risk of liquidation in the balance strategy w**hen the price go up.
- API error, if the return of API access is delayed or the data is wrong, it will cause a strategy exception.
- Funding fee loss, there is little risk in this respect. Generally, the fee will be positive when the price go up. If the funding fee is too high, you can close the position in advance.